OVC issues 10 VC investment polices

The calla lily-shaped landmark of OVC can be seen among other skyscrapers. [Photo/WeChat account of Optics Valley of China]

The East Lake High-tech Development Zone (also known as Optics Valley of China, or OVC) recently implemented 10 polices to build itself into a venture capital (VC) investment hub of Central China, attract more venture capital and talents in the field, optimize venture capital management, and build a first-class financing environment for startup companies.

The new policies are expected to provide solid financial guarantees for the construction of the Optics Valley Sci-Tech Corridor that features the East Lake Science City.

Covering fund raising, investment in OVC-based firms, capital management, and VC exits, the policies reward VC firms that establish businesses in OVC with up to 20 million yuan ($3.05 million), and subsidize their office rent with up to 5 million yuan. VC firms investing in OVC-based companies can receive up to 100 million yuan in bonuses annually and will still receive 5 percent of their total profits when they exit from a project they have invested in.

Venture capitalists who invest in an enterprise that is purchased by or merges with corporations in OVC will receive a special award of 5 million yuan every year. They will receive the same award if they successfully bring in enterprises from outside the valley.

Enterprises in major industries that have set up employee stock platforms will also receive an award of 10 percent of the platform's gross revenue.

The valley supports State-owned enterprises in carrying out more effective personnel managing incentive policies and regulations and encourages them to launch venture capital investment businesses by expanding the total VC guiding fund scale to 10 billion yuan.

OVC is currently home to 181 private equity fund managers, accounting for 44 percent of Hubei province's total, with its net assets valued at about 110 billion yuan, nearly 50 percent of the provincial total.

Please follow the official WeChat account "中国光谷" (meaning Optics Valley of China) for more information about the 10 policies.